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ENFORCEMENT DECREE OF THE SPECIAL ACT ON INCOME CONTINGENT LOAN — 법갈피

영문법령 / ENFORCEMENT DECREE OF THE SPECIAL ACT ON INCOME CONTINGENT LOAN

ENFORCEMENT DECREE OF THE SPECIAL ACT ON INCOME CONTINGENT LOAN

대통령령일부개정시행 2022-12-20교육부 · 제33080호 · 공포 2022-12-20

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Decree is to provide for matters delegated by the Special Act on Income Contingent Loan and those necessary for the enforcement thereof.

Article 2(Scope of Undergraduate Students) #

"Person prescribed by Presidential Decree" in subparagraph 4 of Article 3 of the Special Act on Income Contingent Loan (hereinafter referred to as the "Act") means the following persons: <Amended on Dec. 20, 2022>

1. Persons who complete an associate degree course;

2. Persons who complete a bachelor's degree course;

3. Persons who complete a master of professional technology course;

4. Persons who complete a master's degree course;

5. Persons who complete a doctorate degree course.

[This Article Newly Inserted on Dec. 31, 2021]

[Previous Article 2 moved to Article 2-2 <Dec. 31, 2021>]

Article 2-2(Scope of Financial Companies) #

“Institution prescribed by Presidential Decree” referred to in subparagraph 5 of Article 3 of the Act means financial companies, etc. defined in subparagraph 1 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality, which include financial companies, etc. other than banks defined in Article 2 (1) 2 of the Banking Act, and the centralized credit information collection agency defined in Article 25 (2) 1 of the Credit Information Use and Protection Act. <Amended on Nov. 15, 2010; Aug. 4, 2020; Jun. 22; 2021; Dec. 31, 2021>

[Moved from Article 2 <Dec. 31, 2021>]

Article 2-3(Long-Term Non-Payers) #

The following debtors shall be long-term non-payers under subparagraph 10 of Article 3 of the Act:

Article 7(Duty for Report of Debtors) #

(1) From the year in which the day of receiving a loan falls to the year immediately preceding the year in which the day of completely repaying it falls, a debtor shall report the matters subject to reporting as specified in Article 15 (1) of the Act during the period between December 1 and December 31 of each year: Provided, That where any of the following grounds arises, a debtor may make such report during a period separately determined by the Minister of Education: <Amended on Jul. 19, 2016; Jun. 30; 2020>

1. Military service or service of alternative service personnel under the Act on the Assignment and Performance of the Alternative Service;

2. Overseas travel;

3. Diseases;

4. Other grounds determined by the Minister of Education as equivalent to those prescribed in subparagraphs 1 through 3.

(2) In cases of change of his or her address or workplace, a debtor shall additionally report the said change by the end of the month following the month in which the date of such change falls. <Amended on Jul. 19, 2016>

(3) Any report pursuant to paragraphs (1) and (2) and Article 15 (2) of the Act shall be made electronically via the information and communications network for income contingent loan repayment. In such cases, the report shall be deemed filed when the matters subject to reporting are entered in the information and communications network for income contingent loan repayment. <Amended on Jul. 19, 2016>

(4) The Minister of Education may extend the period of report referred to in paragraphs (1) and (2) in the event of disruptions in the normal operation of the information and communications network for income contingent loan repayment due to an act of God, communications failures, program errors, or any other unavoidable cause. <Amended on Jul. 19, 2016>

(5) Except as provided in paragraphs (1) through (4), matters necessary for the procedures, methods, etc. for reporting shall be determined by the Minister of Education. <Newly Inserted on Jul. 19, 2016>

Article 8(Loan Discharge) #

(1) "Age prescribed by Presidential Decree" in Article 16 (2) of the Act means 65, and “amount of deemed income prescribed by Presidential Decree” in that paragraph means the deemed income threshold for repayment prescribed in Article 19 (2) of the Act. <Amended on Jul. 19, 2016; Dec. 31, 2021>

(2) In order to be fully or partially exempted from repayment of the principal and interest of a loan on the grounds of death or mental or physical disability of a debtor pursuant to Article 16 (3) of the Act, any of the following persons shall apply for a full or partial exemption from repaying the principal and interest of the loan to the Minister of Education by submitting an application prescribed by Ordinance of the Ministry of Education, accompanied by the related documents specified in paragraph (3): <Newly Inserted on Jul. 19, 2016; Apr. 14, 2020>

1. The debtor him or herself or his or her agent;

2. The spouse, a lineal blood relative, or a collateral blood relative within the fourth degree of relationship of the debtor.

(3) The related documents to be attached when applying for exemption from repayment pursuant to paragraph (2) are as follows:　<Newly Inserted on Jul. 19, 2016; Apr. 14, 2020>

1. A family relation certificate referred to in Article 15 (1) 1 of the Act on the Registration of Family Relationships (to be attached only when a person falling under paragraph (2) 2 of this Article files an application);

1-2. A document supporting a proxy relationship with the debtor, such as a power of attorney (to be attached only when an agent of the debtor files an application under paragraph (2) 1);

2. A document certifying death, such as a death certificate (to be attached only when the debtor died);

3. A document confirming the degree of mental and physical disability of the debtor, such as a registration certificate for a person with a disability under Article 32 (1) of the Act on Welfare of Persons with Disabilities, or a document confirming the person is a recipient under subparagraph 4 of Article 2 of the Act on Pensions for Persons with Disabilities (limited to cases other than the debtor’s death);

4. Where an heir to the debtor gives a qualified acceptance of inheritance, a document substantiating the aforesaid fact (to be attached only when the debtor died).

(4) Upon receipt of an application for exemption from repayment pursuant to paragraph (2), the Minister of Education may fully or partially exempt the repayment of the principal and interest of a loan, taking into consideration the degree of physical and mental disability, income, property level, etc. of the debtor. In such cases, the Minister of Education shall prescribe and publicly notify detailed matters concerning the criteria for exemption from repayment. <Newly Inserted on Apr. 14, 2020>

[Title Amended on Jul. 19, 2016]

Article 10(Amount of Annual Income) #

(1) “Annual income of a debtor prescribed by Presidential Decree” in Article 18 (2) of the Act means the following incomes calculated, based on the incomes prescribed in the subparagraphs of Article 4 (1) of the Income Tax Act (excluding incomes subject to non-taxation by that Act and the Act on Restriction on Special Cases Concerning Taxation): <Amended on Aug. 28, 2018; Dec. 31, 2021>

1. Gross income: The aggregate sum of interest income prescribed in Article 16 (2) of the Income Tax Act, the amount of dividend income prescribed in Article 17 (3) of that Act, the amount of business income prescribed in Article 19 (2) of that Act, the amount of wage and salary income prescribed in Article 20 (2) of that Act, the amount of pension income referred to in Article 20-3 (3) of that Act, and the total amount of other incomes referred to in Article 21 (3) of that Act;

2. A wage and salary income prescribed in Article 20 (2) of the Income Tax Act.

3. The amount of pension income prescribed in Article 20-3 (3) of the Income Tax Act;

4. The amount of retirement income prescribed in Article 22 (3) of the Income Tax Act;

5. The amount of capital gains prescribed in Article 95 (1) of the Income Tax Act (limited to capital gains provided for in Article 94 (1) 1 of the Income Tax Act).

(2) Matters necessary for the methods, etc. for calculating the amount of annual income referred to in paragraph (1) shall be prescribed by Ordinance of the Ministry of Education. <Amended on Mar. 23, 2013>

(3) "Ratio prescribed by Presidential Decree" in Article 18 (2) of the Act (hereinafter referred to as "repayment ratio") means the following: <Newly Inserted on Dec. 31, 2021>

1. Where a person referred to in subparagraphs 1 and 2 of Article 2 has taken out a loan: 20/100;

2. Where a person referred to in subparagraphs 3 and 4 of Article 2 has taken out a loan: 25/100;

3. Where a debtor, who has taken out a loan referred to in subparagraph 1, has also taken out a loan referred to in subparagraph 2 and there is outstanding principal and interest on each loan: 25/100: Provided, That if the outstanding principal and interest on a loan becomes smaller than the compulsory repayment amount (referring to a compulsory repayment amount calculated by multiplying 25/100) specified in Article 18 (2) of the Act because the debtor has preferentially paid the principal and interest on the loan under subparagraph 2, the ratio shall be 20/100.

(4) “Minimum amount of compulsory repayment prescribed by Presidential Decree” in Article 18 (2) of the Act shall be 360,000 won per year. <Amended on Dec. 31, 2021>

(5) Where the Minister of Education publicly notifies an income threshold for repayment pursuant to Article 18 (5) of the Act, he or she shall have a prior consultation the Minister of Economy and Finance. <Amended on Mar. 23, 2013; Dec. 31, 2021>

Article 10-2(Deferment of Repaying Compulsory Repayment Amounts of Debtors) #

(1) Standards for cases where a debtor has economic difficulties, falling under Article 18 (7) 2 through 4 of the Act, shall be as follows: <Inserted on Aug. 28, 2018>

1. A debtor who falls under Article 18 (7) 2 of the Act: The sum of the following amounts among the amount of annual incomes applied to the calculation of the compulsory repayment amount, the repayment of which is intended to be deferred pursuant to that paragraph (hereinafter referred to as "amount of income used as a basis of calculation") shall be smaller than the income threshold for repayment applied to the calculation of the relevant compulsory repayment amount:

(a) The amount of wage and salary income prescribed in Article 10 (1) 2;

(b) The amount of retirement income prescribed in Article 10 (1) 4;

2. A debtor who falls under Article 18 (7) 3 or 4 of the Act: The sum of the following amounts among the amount of income used as a basis of calculation shall be smaller than the income threshold for repayment applied to the calculation of the relevant compulsory repayment amount:

(a) The amount of business income among the gross income prescribed in Article 10 (1) 1;

(b) The amount of retirement income prescribed in Article 10 (1) 4;

3. A debtor who falls under Article 18 (7) 2 of the Act and also under subparagraph 3 or 4 of that paragraph: The sum of the following amounts among the amount of income used as a basis of calculation shall be smaller than the income threshold for repayment applied to the calculation of the relevant compulsory repayment amount:

(a) The amount of retirement income prescribed in Article 10 (1) 4;

(b) The amount of capital gains prescribed in Article 10 (1) 5.

(2) A debtor who intends to apply for the deferment of repayment prescribed in Article 18 (7) of the Act (hereinafter referred to as "deferment of repayment") shall submit an application prescribed by Ordinance of the Ministry of Education to the heads of tax offices as divided in the below along with documents prescribed by Ordinance of the Ministry of Education: <Amended on Aug. 28, 2018>

1. Where he or she comes to assume the responsibility for repayment due to business income among the gross income prescribed in Article 10 (1) 1 (excluding business income referred to in Article 144-2 of the Income Tax Act): The head of the tax office having jurisdiction over the address of the debtor;

2. Where he or she comes to assume the responsibility for repayment due to wage and salary income prescribed in Article 10 (1) 2 or business income referred to in Article 144-2 of the Income Tax Act: The head of the tax office having the jurisdiction over the place of business of the subtracting agent: Provided, That in cases falling under Article 24 (4) of the Act, such submission shall be made to the head of the tax office having the jurisdiction over the address of the debtor.

(3) An application referred to in paragraph (2) shall be submitted within the time limit, classified as follows: <Amended on Aug. 28, 2018>

1. Where a compulsory repayment amount is notified:　From the date of receipt of the notice until the date three days prior to the payment deadline;

2. Where the amount to be subtracted at source is notified:　The periods as divided in the below:

(a) Where falling under Article 18 (7) 1 of the Act: The period from the date on which a notice is received until the date one month before the expiration of the relevant period of subtracting at source (referring to the period from July 1 of the relevant year until June 30 of the following year; hereinafter the same shall apply): Provided, That where falling under Article 24 (4) of the Act, it shall be submitted during the period from the date on which a notice is received until the date three days prior to the deadline for payment;

(b) Where falling under any of subparagraphs 2 through 4 of Article 18 (7) of the Act: The period from June 1 of the year to which the date on which a notice is received belongs until the date one month before the expiration of the relevant period of subtracting at source: Provided, That where falling under Article 24 (4) of the Act, it shall be submitted during the period from June 1 of the year to which the date on which a notice is received belongs until the date three days before the expiration of the deadline for payment.

(4) The amount of a debt, the repayment of which is deferred, shall be the remaining amount after subtracting the already paid amount from the compulsory repayment amount as of the date on which an application for the deferment of repayment is filed. In such cases, with respect to the compulsory repayment amount to be repaid by the method of subtracting at source, where the date of subtracting at source that arrives for the first time after the date of application falls into the period of 15 days from the date of application, the amount to be subtracted at source on the relevant date of subtracting at source shall be subtracted at source and excluded from the amount eligible for the deferment of repayment. <Amended on Aug. 28, 2018>

(5) The repayment deferment period shall be from the application date for deferment of repayment to December 31 of the year to which the date the following classified time elapses belongs, and the payment deadline before the repayment deferment shall be extended to the date the repayment deferment period expires: <Amended on Aug. 28, 2018; Apr. 14, 2020>

1. Where repayment is deferred on the ground falling under Article 18 (7) 1 of the Act: Four years;

2. Where repayment is deferred on the ground falling under any of subparagraphs 2 through 4 of Article 18 (7) of the Act: Two years.

(6) The deferment of repayment shall expire in any of the following cases: <Amended on Aug. 28, 2018>

1. Where the repayment grace period referred to in paragraph (5) expires;

2. Where the debtor is found to have been granted deferment of repayment by fraud or other improper means.

(7) Where the deferment of repayment is terminated on the ground specified in paragraph 6 (2), the arrearages calculated on the basis of the payment deadline before the deferment of repayment shall be collected from the debtor. In such cases, Article 30 of the Act shall apply mutatis mutandis to the calculation of arrearages, etc. <Amended on Aug. 28, 2018>

(8) Except as provided in paragraphs (1) through (7), matters necessary for the deferment of repayment, repayment after the termination of deferment of repayment, etc. shall be prescribed by Ordinance of the Ministry of Education. <Amended on Aug. 28, 2018>

[This Article Newly Inserted on Jul. 19, 2016]

[Title Amended on Aug. 28, 2018]

Article 13(Scope of Property) #

(1) The scope of property that serves as the basis for calculating the deemed income referred to in Article 11 (1) shall be as follows: <Amended on Sep. 20, 2010; Apr. 17, 2012; Dec. 21, 2012; Mar. 23, 2013; Aug. 11, 2016; Mar. 29, 2017; Feb. 27, 2018; Apr. 6, 2021>

1. General property:

(a) Land, buildings, and housing provided for in subparagraphs 1 through 3 of Article 104 of the Local Tax Act: Provided, That family property, village property, and other property equivalent thereto used for common purposes shall be excluded herefrom;

(b) Ships and aircraft provided for in subparagraphs 4 and 5 of Article 104 of the Local Tax Act;

(c) Lease deposits for housing, shopping facilities, buildings, etc. (including security money for lease on a deposit basis);

2. Financial property:

(a) Financial assets defined in subparagraph 2 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality: Provided, That bills and checks shall be excluded herefrom;

(b) Insurance products referred to in Article 4 (1) of the Insurance Business Act: Provided, That insurance products prescribed by Ordinance of the Ministry of Education shall be excluded herefrom;

3. Automobiles referred to in Article 124 of the Local Tax Act: Provided, That the following automobiles shall be excluded herefrom:

(a) Automobiles owned by persons of distinguished service to the State who have obtained a disability rating prescribed in Article 6-3 of the Act on the Honorable Treatment of and Support for Persons of Distinguished Service to the State;

(b) Automobiles owned by injured persons of the May 18 Democratization Movement registered pursuant to Article 7 of the Act on the Honorable Treatment of Persons of Distinguished Service to the May 18 Democratization Movement and Establishment of Related Organizations;

(c) Automobiles owned by patients suffering from potential aftereffects of defoliants who have obtained at least the mild disability rating pursuant to Article 4 of the Act on Assistance to Patients Suffering from Actual or Potential Aftereffects of Defoliants and Establishment of Related Organizations;

(d) Automobiles owned by persons with disabilities registered pursuant to Article 32 of the Act on Welfare of Persons with Disabilities;

(e) Automobiles granted with tax exemption pursuant to Article 4 of the Restriction of Special Local Taxation Act;

4. Membership rights for using a golf course that recruits members pursuant to Article 17 of the Installation and Utilization of Sports Facilities Act;

5. The right to acquire real estate:

(a) The occupation right of an association member provided for in Article 89 (2) of the Income Tax Act;

(b) The right to acquire a building and the land appurtenant thereto when the building is completed (excluding the occupation right of an association member referred to in item (a));

(c) Land repayment bonds provided for in Article 20 (2) of the Housing Site Development Promotion Act, Article 23 (1) of the Urban Development Act, Article 15 (1) of the Special Act on the Development of Enterprise Cities, Article 17 (2) of the New Harbor Construction Promotion Act, Article 21 (1) of the Special Act on the Construction and Development of Innovation Cities, and Article 10 (1) of the Korea Land and Housing Corporation Act;

(d) Redeemable housing bonds referred to in Article 80 (1) of the Housing Act;

6. Other property and rights prescribed by Ordinance and the Ministry of Education, which are equivalent to those prescribed in subparagraphs 1 through 5.

(2) The value of property prescribed in paragraph (1) shall be determined based on the following values as at the date of June 1 (hereinafter referred to as “base date of ownership”) of the year in which the date the debtor becomes a long-term non-payer falls: <Amended on Sep. 20, 2010; Mar. 23, 2013; Feb. 9, 2018; Dec. 31, 2021>

1. Property specified in paragraph (1) 1 (a) and (b): Standard market prices prescribed in Article 4 (1) and (2) of the Local Tax Act;

2. Lease deposits (including security money for lease on a deposit basis) prescribed in paragraph (1)　1 (c): The amount of lease deposit and security money for lease on a deposit basis calculated in accordance with the method prescribed by Ordinance of the Ministry of Education;

3. Property specified in paragraph (1) 2: The value of each financial property prescribed in Article 42 (2) 1 and 3;

4. Automobiles prescribed in paragraph (1) 3: Standard market prices calculated in accordance with Article 4 (2) of the Local Tax Act;

5. Membership rights referred to in paragraph (1) 4: The value evaluated in accordance with Article 165 (8) 3 of the Enforcement Decree of the Income Tax Act;

6. The right referred to in paragraph (1) 5:

(a) The occupation right of an association member provided for in paragraph (1) 5 (a): The amount according to the following classification:

(i) Where the debtor has paid settlement money: The amount gained by aggregating the price determined according to a management and disposal plan prescribed in Article 74 of the Act on the Act on the Improvement of Urban Areas and Residential Environments (hereinafter referred to as “assessed value of the existing building”) and the settlement money (limited to the amount the debtor has paid);

(ii) Where the debtor has been paid settlement money: The amount gained by subtracting the settlement money (limited to the amount the debtor has been paid) from the assessed value of the existing building;

(b) The right prescribed in paragraph (1) 5 (b): The amount which has been paid as of the base date of ownership;

7. The property and right prescribed in paragraph (1) 6: The value calculated in accordance with the method prescribed by Ordinance of the Ministry of Education.

Article 20(Payment of Principal and Interest on Loans by Debtors Having Global Income) #

(1) The determination or correction of a compulsory repayment amount prescribed in Article 23 (1) through (3) of the Act shall be made based on objective data, such as data used to determine the tax base of global income and other relevant evidential documents. <Amended on Jul. 19, 2016>

(2) The notification on determination or correction of a compulsory repayment amount prescribed in Article 23 (5) of the Act shall include the following matters: <Amended on Jul. 19, 2016>

1. The fact that a debtor is obliged to pay a compulsory repayment amount on account of his or her global income;

2. The basis for calculation of the payment amount;

3. Other matters necessary for paying a compulsory repayment amount, as determined by the Minister of Education.

(3) Where a debtor who has paid a compulsory repayment amount pursuant to Article 23 (6) of the Act falls under any of the following, he or she may receive a refund for the relevant overpaid amount. In such cases, the debtor who wishes to be refunded shall apply for a refund, as prescribed by Ordinance of the Ministry of Education: <Amended on Jul. 19, 2016>

1. Where a debtor pays a compulsory repayment amount according to the determination of the compulsory repayment amount made pursuant to Article 23 (1) or (2) of the Act, but the compulsory repayment amount is reduced thereafter due to the correction of the compulsory repayment amount prescribed in Article 23 (2) or (3) of the Act;

2. Where a debtor has paid in excess of the compulsory repayment amount that shall be actually paid due to double payment, erroneous payment, etc.

(4) A debtor entitled to a refund pursuant to paragraph (3) may, instead of receiving a refund for the excess amount, apply for appropriating it for the next compulsory repayment amount, as prescribed by Ordinance of the Ministry of Education. <Amended on Jul. 19, 2016>

(5) Where a debtor entitled to a refund prescribed in paragraph (3) applies for neither the refund referred to in paragraph (3) nor the appropriation referred to in paragraph (4), the excess amount shall be appropriated to pay the principal and interest on a loan and its accompanying obligations, and the remaining balance shall be refunded to the debtor. <Amended on Jul. 19, 2016>

(6) Notwithstanding paragraphs (3) through (5), where a debtor has defaulted on the principal and interest on a loan, the excess amount shall be appropriated to pay the principal and interest on the loan in default and its accompanying obligations including arrearages, etc., and the remaining balance shall be processed in accordance with paragraphs (3) through (5). <Newly Inserted on Jul. 19, 2016>

[Title Amended on Jul. 19, 2016]

Article 21(Subtracting Principal and Interest on Loans at Source from Debtors with Earned Income) #

(1) Where the head of the tax office having jurisdiction over the place of business of a subtracting agent notifies the debtor and the subtracting agent of the amount to be subtracted at source for the payment of the principal and interest on a loan by the debtor having earned income pursuant to Article 24 (1) of the Act, he or she shall do so within the relevant period according to the following by issuing written notice on subtraction at source prescribed by Ordinance of the Ministry of Education: <Amended on Mar. 23, 2013; Jul. 19, 2016>

1. Year-end settlement report: June 30 of the year of report;

2. Where the principal and interest on the loan is determined or corrected: Within 15 days from the date of such determination or correction;

3. Where the debtor terminates employment:　The earliest date of the following: Provided, That where the dates according to the following fall on the same day, such date:

(a) The last day of the month following the month in which the date when the debtor reports the termination of his or her employment falls;

(b) The last day of the month following the month in which the date when the head of a tax office having the jurisdiction over the place of business of the subtracting agent comes to know of the termination of the employment of the debtor falls.

(2) The written notice on subtraction at source referred to in paragraph (1) shall contain the following information: <Amended on Mar. 23, 2013>

1. The fact that a compulsory repayment amount calculated by taking into account the changes in earned income each year must be paid;

2. The obligation to report when the debtor retires or otherwise terminates his or her employment;

3. The obligation to pay a compulsory repayment amount, arising when the debtor earns severance income;

4. The fact that the subtracting agent will subtract the principal and interest on the loan at source;

5. Other matters determined by the Minister of Education with respect to subtracting the principal and interest on the loan at source.

(3) The monthly amount that a subtracting agent should pay pursuant to Article 24 (2) of the Act shall be the amount gained by dividing a compulsory repayment amount calculated based on the amount of earned income or pension income pursuant to Article 18 (2) of the Act by 12 months; and, where a debtor changes his or her job, etc. during the relevant period for subtraction at source, a new subtracting agent after such change of job shall subtract the amount calculated according to the following formula at source: <Amended on Jul. 19, 2016>

The monthly amount to be subtracted at source = (the annual compulsory repayment amount calculated based on earned income or pension income - the compulsory repayment amount already paid)/the number of the remaining months of the relevant period of subtraction at source)

(4) The subtracting agent shall subtract the relevant amount at source, beginning with the salary or wage for the month following the month in which the date of receipt of written notice on subtraction at source referred to paragraph (1) falls.

(5) Notwithstanding paragraphs (3) and (4), in cases falling under paragraph (1) 2, the compulsory repayment amount which has been unpaid or underpaid shall be subtracted at source, beginning with the salary or wage for the month following the month when a compulsory repayment amount is notified as prescribed by Ordinance of the Ministry of Education. <Amended on Mar. 23, 2013>

(6)　Article 7 of the Income Tax Act and Article 9 of the Corporate Tax Act shall apply mutatis mutandis to the place for payment of a compulsory repayment amount subtracted at source by a subtracting agent pursuant to Article 24 (2) of the Act: Provided, That where a corporation collectively computes the amount subtracted at source from the income paid through its branches, business offices, and other places of business by an electronic computer system in its headquarters, etc., such corporation may make the collective payment at its headquarters, etc. after acquiring approval for collective payment pursuant to Article 9 of the Corporate Tax Act; and, in such cases, the compulsory repayment amount subtracted at source shall be paid to the receiving agency determined by the Minister of Education, together with a statement of payment prescribed by Ordinance of the Ministry of Education. <Amended on Mar. 23, 2013>

(7) “Fault prescribed by Presidential Decree” in Article 24 (3) of the Act means cases where a debtor fails to prove that a subtracting agent has subtracted a compulsory repayment amount at source from his or her earned income, or other cases equivalent thereto prescribed by Ordinance of the Ministry of Education. <Amended on Mar. 23, 2013>

(8) "Where ... no subtracting agent exists due to reasons prescribed by Presidential Decree, such as retirement, etc.” in Article 24 (4) of the Act mean situations where there is no subtracting agent due to such reasons as the termination of employment or retirement of a debtor, the discontinuance of business by a subtracting agent, etc.

(9) Where a debtor directly pays a compulsory repayment amount pursuant to Article 24 (4) of the Act, he or she shall pay it to a receiving agency determined by the Minister of Education, together with a statement of payment prescribed by Ordinance of the Ministry of Education, by the end of the relevant period for subtraction at source referred to in paragraph (3). <Amended on Mar. 23, 2013>

(10) In cases of subtracting at source pursuant to paragraphs (3) and (4), where a compulsory repayment amount exceeds the amount of earned income or pension income to be paid, the excess amount shall be subtracted at source when paying the following month’s earned income or pension income.

(11) Except as provided in paragraphs (1) through (10), matters necessary for subtracting at source the principal and interest on a loan shall be prescribed by Ordinance of the Ministry of Education. <Amended on Mar. 23, 2013>

[Title Amended on Jul. 19, 2016]

Article 24(Payment of Principal and Interest on Loans by Debtors with Transfer Income) #

(1) The determination or correction of a compulsory repayment amount pursuant to Article 27 (1) through (3) of the Act shall be made on the basis of objective data, including data used to determine the tax base of transfer income and other evidentiary documents, etc.

(2) Notification of the determination or correction of a compulsory repayment amount pursuant to Article 27 (4) of the Act shall contain the following information:

1. The fact that the debtor is obliged to pay a compulsory repayment amount on account of his or her transfer;

2. The basis for calculation of the payment amount;

3. Other matters necessary for paying a compulsory repayment amount, as determined by the Minister of Education.

(3) Where a debtor who has paid a compulsory repayment amount pursuant to Article 27 (5) of the Act falls under any of the following, he or she may receive a refund for the relevant overpaid amount. In such cases, the debtor who wishes to be refunded shall apply for the refund, as prescribed by Ordinance of the Ministry of Education:

1. Where a debtor has paid a compulsory repayment amount according to the determination of the compulsory repayment amount made pursuant to Article 27 (1) or (2) of the Act, but the compulsory repayment amount is reduced thereafter due to the correction of the compulsory repayment amount prescribed in Article 27 (2) or (3) of the Act;

2. Where a debtor has paid in excess of the compulsory repayment amount that shall be actually paid due to double payment, erroneous payment, etc.

(4) A debtor entitled to a refund pursuant to paragraph (3) may, instead of being refunded for the excess amount, apply for appropriating it for the next compulsory repayment amount, as prescribed by Ordinance of the Ministry of Education.

(6) Notwithstanding paragraphs (3) through (5), where a debtor has defaulted on the principal and interest on a loan, the excess amount shall be appropriated to pay the principal and interest on the loan in default and its accompanying obligations, including arrearages, etc., and the remaining balance shall be processed in accordance with paragraphs (3) through (5).

[This Article Wholly Amended on Jul. 19, 2016]

Article 25(Payment of Principal and Interest on Loans by Debtors Receiving Inheritances or Gifts) #

(1) The determination or correction of a compulsory repayment amount pursuant to Article 28 (1) through (3) of the Act shall be made on the basis of objective data, including data used to determine the tax base of inheritance tax or gift tax and other evidentiary documents, etc.

(2) Notification of determination or correction referred to in Article 28 (4) of the Act shall contain the following information:

1. The fact that the debtor is obliged to pay a compulsory repayment amount on account of an inheritance or gift;

2. The basis for calculation of the payment amount;

3. Other matters necessary for paying a compulsory repayment amount, as determined by the Minister of Education.

(3) Where a debtor who has paid a compulsory repayment amount pursuant to Article 28 (5) of the Act falls under any of the following, he or she may receive a refund for the relevant overpaid amount. In such cases, the debtor who wishes to be refunded shall apply for the refund, as prescribed by Ordinance of the Ministry of Education:

1. Where a debtor has paid a compulsory repayment amount according to the determination of the compulsory repayment amount made pursuant to Article 28 (1) or (2) of the Act, but the compulsory repayment amount to be paid is reduced thereafter due to the correction of the compulsory repayment amount prescribed in Article 28 (2) or (3) of the Act;

2. Where a debtor has paid in excess of the compulsory repayment amount that shall be actually paid due to double payment, erroneous payment, etc.

(6) Notwithstanding paragraphs (3) through (5), where a debtor has defaulted on the principal and interest on a loan, the excess amount shall be appropriated to pay the principal and interest on the loan in default and its accompanying obligations, including arrearages, etc., and the remaining balance shall be processed in accordance with paragraphs (3) through (5).

[This Article Wholly Amended on Jul. 19, 2016]

Article 42(Request for Data) #

(1) The data other than financial data that the Minister of Education may request from relevant institutions in order to implement programs for income contingent loans and their repayment programs pursuant to Article 37 (1) of the Act shall be as follows: <Amended on Sep. 20, 2010; Mar. 23, 2013; Apr. 22, 2014; Jul. 19, 2016; Apr. 14; 2020, Feb. 17, 2021; Jun. 22, 2021>

1. Computerized information data containing matters related to family relationship registration prepared and maintained by the Minister of National Court Administration pursuant to Article 11 (4) of the Act on the Registration of Family Relationships;

2. Resident registration data pursuant to the Resident Registration Act;

2-2. The mobile phone number that a debtor falling under the definition of a user defined in subparagraph 3 of Article 2 of the Mobile Device Distribution Improvement Act uses in accordance with his or her contract for using mobile communications services (this information to be used only for the purpose of providing the debtor with information regarding repayment);

3. Taxation data on the property tax and comprehensive real estate holding tax under Article 119-2 (2) of the Enforcement Decree of the Local Tax Act;

4. Current status data on motor vehicle management prescribed in Article 69 of the Motor Vehicle Management Act;

4-2. Current status data on construction machinery management prescribed in Article 39-2 of the Construction Machinery Management Act;

5. Data for determining the standard market prices for vehicles and the standard market prices for mechanical equipment prescribed in Article 4 (1) 3 and 4 of the Enforcement Decree of the Local Tax Act;

6. Data concerning the date obtaining the fixed date on the lease contract document pursuant to the Housing Lease Protection Act;

7. Matters registered in the rights to lease on a deposit basis provided for in the Registration of Real Estate Act;

8. Data on the income and property of the insured, and data concerning their eligibility for subscription, including the type of eligibility, workplace information, etc., prescribed in the National Health Insurance Act;

8-2. Data on the protection and services provided under social security-related statutes or regulations, such as the Act on Welfare of Persons with Disabilities and the Act on Pensions for Persons with Disabilities;

8-3. Data on litigations seeking revocation of any fraudulent act and restitution of its original status under Article 25 of the National Tax Collection Act, Article 39 of the Local Tax Collection Act, Article 18 of the Act on the Collection of Local Administrative Penalty Charges, and Article 406 of the Civil Act;

9. Other data prescribed by Ordinance of the Ministry of Education as necessary to understand the current property status of debtors when conducting projects for income contingent loans and their repayment.

(2) The types and contents of financial data that the Minister of Education may demand from relevant institutions in order to conduct projects for income contingent loans and their repayment pursuant to Article 37 (1) of the Act shall be as follows: <Amended on Mar. 23, 2013>

1. The balance of deposits and other materials or information specified in the following items (hereinafter referred to as "financial information") out of materials or information on financial assets and financial transactions prescribed in subparagraphs 2 and 3 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality:

(a) Deposits including ordinary deposits, savings accounts, installment deposits, etc.: The account balances;

(b) Shares and beneficiary certificates: Final quotations. In cases of unlisted stocks, their face values shall be provided;

(c) Investments, investment equities, bonds, debentures, and certificates of preemptive right to new stocks: Face value amounts;

(d) Pension savings: The amounts paid regularly or final balances;

2. The amount of debts and other materials or information specified in the following items (hereinafter referred to as "credit information") out of the credit information prescribed in subparagraph 1 of Article 2 of the Credit Information Use and Protection Act:

(a) Loans and details of arrearage;

(b) Outstanding credit card balance;

3. The premiums paid for any insurance prescribed in each subparagraph of Article 4 (1) of the Insurance Business Act, and other materials or information provided for in the following (hereinafter referred to as "insurance information"):

(a) Insurance policies: The amount refundable when insurance is terminated;

(b) Pension insurance: The amount refundable when insurance is terminated or the amount paid on a regular basis;

4. Other financial information prescribed by Ordinance of the Ministry of Education as necessary to understand the current property status of debtors when conducting projects for income contingent loans and their repayment.

(3) “Other institutions and organizations prescribed by Presidential Decree” in Article 37 (1) 6 of the Act means any of the following institutions or organizations: <Newly Inserted on Jul. 19, 2016>

1. The Korea Association for Information and Communications Technology Promotion prescribed in Article 15 of the Framework Act on Broadcasting Communications Development;

2. Mobile communications business operator defined in subparagraph 2 of Article 2 of the Mobile Device Distribution Improvement Act.

[Title Amended on Jul. 19, 2016]

Article 44-4(Persons Obliged to Return Amount Exceeding Educational Expenses) #

(1) Persons from whom the Minister of Education and the Korea Student Aid Foundation may obtain a return of the amount received in excess of educational expenses pursuant to the Article 39 (6) of the Act shall be undergraduate students, graduate students, or their parents (hereinafter referred to as “persons obliged to pay a return”), in whose case the aggregate of the following amounts that have been received as educational expenses necessary for one semester (hereinafter referred to as “educational expenses that have been supported”) is greater than the total amount of educational expenses actually required for the relevant semester (hereinafter referred to as “necessary educational expenses”):

1. The amount calculated by aggregating the amount of educational expenses received free of charge from any institution falling under Article 39 (2) 1 through 8 of the Act and the amount of loan received for the purpose of paying educational expenses;

2. The amount calculated by aggregating the amount of educational expenses received free of charge from the Minister of Education and the Korea Student Aid Foundation pursuant to the Act or the Act on the Establishment of Korea Student Aid Foundation and the amount of loan received for the purpose of paying educational expenses.

(2) Notwithstanding paragraph (1), the Minister of Education may exclude from the persons obliged to pay a return undergraduate students, graduate students, or their parents deemed as exceptions for returning the amount exceeding necessary educational expenses pursuant to Article 39 (6) of the Act, after taking into consideration the reasons for excessive support of educational expense, the amount exceeding educational expenses, their level of income, etc.

(3) The amount exceeding educational expenses that may be returned to the Minister of Education and the Korea Student Aid Foundation pursuant to Article 39 (6) of the Act shall be the amount gained by subtracting necessary educational expenses from the educational expenses that have been supported: Provided, That where the amount calculated this way exceeds the amount prescribed in paragraph (1) 2, the amount prescribed in paragraph (1) 2 shall apply.

(4) Where the Minister of Education and the Korea Student Aid Foundation intend to receive a return of the amount exceeding educational expenses pursuant to Article 39 (6) of the Act, the Minster and the Foundation shall issue a written notice to the person obliged to pay a return, requiring him or her to return the amount received in excess of educational expenses, by specifying the reasons for return, the methods of return, the amount to be returned, the payment deadline of return, the procedures for processing the returned amount, etc. In such cases, the payment deadline of return shall be determined to be at least 30 days after the date of notification.

(5) The Minister of Education and the Korea Student Aid Foundation shall process the amount returned under Article 39 (6) of the Act according to the following classifications. In such cases, if there is any amount remaining after undergoing the process prescribed in subparagraph 1, such remaining amount shall be processed in accordance with subparagraph 2:

1. Where a person obliged to pay a return has received a loan under the Act or the Act on the Establishment of Korea Student Aid Foundation, and has not yet completely repaid the educational expenses: the principal and interest of the loan for educational expenses and its accompanying obligations shall be deemed paid to the extent of the amount returned by the person obliged to pay a return. In such cases, Articles 477 to 479 of the Civil Act shall apply mutatis mutandis to the appropriation of such repayment;

2. Where a person obliged to pay a return has received a loan under the Act or the Act on the Establishment, etc. of Korea Student Aid Foundation, and has repaid the educational expenses in full: the amount of return shall be treated as income of the account or accounting serving as the financial resources for the Minister of Education or the Korea Student Aid Foundation to support educational expenses free of charge in accordance with the standard and order determined and publicly notified by the Minister of Education.

[This Article Newly Inserted on Aug. 29, 2016]

ENFORCEMENT DECREE OF THE SPECIAL ACT ON INCOME CONTINGENT LOAN

Article 1(Purpose) #

Article 2(Scope of Undergraduate Students) #

Article 2-2(Scope of Financial Companies) #

Article 2-3(Long-Term Non-Payers) #

Article 3(Submission of Project Plans) #

Article 4(Eligibility for Agreement on Loans) #

Article 5(Loan Interest Rates) #

Article 6(Application for Loans) #

Article 7(Duty for Report of Debtors) #

Article 8(Loan Discharge) #

Article 9(Exemption from Paying Interest) #

Article 10(Amount of Annual Income) #

Article 10-2(Deferment of Repaying Compulsory Repayment Amounts of Debtors) #

Article 11(Calculation of Deemed Income) #

Article 12(Scope of Income) #

Article 13(Scope of Property) #

Article 14(Methods for Calculating Amount of Income Converted from Property) #

Article 15(Specific Multiples of Income Thresholds for Repayment) #

Article 16(Inspection of Property) #

Article 17(Explanation of Income, Property, and Debts) #

Article 18(Submission of Certificates of Payment of Principal and Interest on Income Contingent Loans) #

Article 19(Notification of Responsibility for Repayment) #

Article 20(Payment of Principal and Interest on Loans by Debtors Having Global Income) #

Article 21(Subtracting Principal and Interest on Loans at Source from Debtors with Earned Income) #

Article 21-2(Payment of Amount Subtracted at Source by Debtors) #

Article 22(Payment of Principal and Interest on Loans by Persons with Pension Income) #

Article 23(Minimum Amount of Retirement Income) #

Article 24(Payment of Principal and Interest on Loans by Debtors with Transfer Income) #

Article 25(Payment of Principal and Interest on Loans by Debtors Receiving Inheritances or Gifts) #

Article 26 #

Article 27 #

Article 28 #

Article 29 #

Article 30(Determination, Correction, and Notification of Amount of Deemed Income and Compulsory Repayment Amount of Long-Term Non-Payers) #

Article 31(Determination, Correction and Notification of Principal and Interest on Loans of Emigrants and Students Studying Abroad) #

Article 32(Notification of Payment of Principal and Interest on Loans) #

Article 33(Arrearages) #

Article 34(Exception to Collection of Arrearages) #

Article 35(Order of Collection) #

Article 35-2(Application for Electronic Service) #

Article 36(Objection Deliberative Committee) #

Article 37(Composition of Objection Deliberative Committee) #

Article 38(Operation of Objection Deliberative Committee) #

Article 39(Methods for Filing Objections) #

Article 40(Notification of Decisions on Objections Filed) #

Article 41(Period for Decisions on Objections Filed) #

Article 42(Request for Data) #

Article 43(Methods for Demanding Financial Information) #

Article 44(Request for Data to Prevent Dual Support) #

Article 44-2(Exemption from Obligation to Submit Data) #

Article 44-3(Scope of Public Interest Corporations) #

Article 44-4(Persons Obliged to Return Amount Exceeding Educational Expenses) #

Article 45(Request for Data) #

Article 45-2(Processing of Personally Identifiable Information) #

Article 46(Criteria for Imposing Administrative Fines) #